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Investing.com - Citizens has reiterated its Market Outperform rating on Iris Energy Limited (NASDAQ:IREN) with a price target of $80.00, according to a recent analyst note. This bullish outlook aligns with the broader crypto mining sector’s momentum, where peers like Hut 8 (NASDAQ:HUT) have seen substantial growth with a 134% price return over the past six months, according to InvestingPro data.
The firm’s analysis comes amid an average decline of approximately 14.4% across its coverage universe since November 3, 2025, suggesting potential for a market correction in the near future. This recent pullback mirrors trends seen in the broader crypto mining sector, where companies like HUT have experienced high price volatility and a significant 11% decline over the past week.
Citizens identified several potential catalysts that could drive a market recovery, including upcoming hyperscale company reports expected in February and anticipated revelations from OpenAI regarding its operating model and financing structure.
Additional factors that could positively impact the sector include potential government incentives from the current administration aimed at maintaining U.S. leadership in AI technologies, covering areas such as zoning, power allocation, and possible financing options.
The firm also highlighted expectations for continued contract signings with customers possessing significant ready-powered capacity for 2026 and 2027, specifically mentioning Iris Energy alongside other companies in its coverage with Market Outperform ratings.
In other recent news, Hut 8 Corp reported strong financial performance for the third quarter of 2025, showcasing significant year-over-year growth in both revenue and net income. Despite the positive earnings report, the company’s stock faced a decline, possibly due to broader concerns about future earnings projections and competitive pressures. In a strategic move, Hut 8 announced the sale of its 310-megawatt portfolio of four natural gas-fired power plants in Ontario to TransAlta Corporation. This portfolio was previously acquired out of bankruptcy and stabilized by Hut 8.
Additionally, Citizens analyst reiterated a Market Outperform rating for Hut 8, maintaining a $65.00 price target amid broader sector weakness. This reiteration suggests confidence in the company’s potential despite recent market fluctuations. Meanwhile, the cryptocurrency sector faced challenges as Bitcoin fell below the $100,000 mark, impacting Hut 8 along with other crypto-related stocks. The decline in Bitcoin’s value led to a 12% drop in Hut 8’s stock, reflecting the broader market trend. These developments highlight the dynamic nature of the market and the various factors influencing Hut 8’s performance.
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